I thought this is probably the best place to inquire if there is a small town between Canberra and Melbourne that my family can spend the night. We are driving from Sydney to Melbourne and have two days. Since we are spending a lot of time in the two big cities, I thought it would be nice to spend some time in a nice small town with some local flavor and where everything is within walking distance.

In summer try Thredbo...take the alpine way over the australian alps into the upper murray and on to melbourne.

Thredbo is certainly a good idea. I really couldn't recommend any of the towns along the most direct Hume Highway route - they're OK, but I wouldn't call them especially picturesque or charming.

You need to be aware though that from Thredbo to Sydney will involve about 6 hours' driving. If you're happy with that, go for Thredbo. I have no idea how long it takes to get there from Melbourne, but you'll see some nice scenery (more than you can say for the Hume Highway).

You could if you wished take the Hume Highway to Canberra - 650 km, say 7 hours - and overnight in Canberra, from where it would be a 3-hour run to Sydney next day. OK, it's not a small town, but it doesn't have a big-city feel (a common complaint of the city's detractors - which don't include its residents ) and it is the national capital.

Hey Neil, "that's not a small town ! This is a small town" ... Crocodile Canberra!

If you only have one night to spend and want to stop between Canberra and Mlb (having left from Sydney) then I guess you are not planning on spending too much time in Canberra.

It deserves more. And if you are not going to give it a full day then why go that way?

If you could squeeze an extra night - then one night in Canberra - leave there mid afternoon and spend the next night in - how about Echuca on the Murray River? Small - walkable - plenty of history. The historical precinct is a bit twee but the location and the river are beautiful. Then I would guess it's 3-4 hours next day from there to Melbourne.

I've travelled this route (stopping in Albury too) but only on the bus so my timings could be a bit out!!

Happy travels.

byr, re-reading yours post I see that I've confused matters by talking as though you'll be driving Melb-Syd and not Syd-Melb. Please reverse my comments!

Echuca would fit the bill very nicely, time permitting - the town has capitalised very well on its history as a Murray River paddelwheeler port, the impressively high jetty still in place, and you can chug along the river on a restored boat. But it's a fair detour and you'd definitely need the extra night.

A much better plan (though a big hike from Sydney and even Canberra) is Beechworth. Just a little off the Hume Hwy and rich in terrific buildings, great restaurants and galleries/antiques with wineries nearby. However, you're much closer to Melbourne going this way and it may be a stretch if you don't leave Sydney at dawn's crack.

Thank you all for some very helpful suggestions. I will definitely check them out before making a final decision.